Why is google free google earns income by selling

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Why is google free? Google earns income by selling click-through ads. Advertising makes newspapersand cable TV much cheaper.Chapter 18: Labor MarketsMarginal Product of Laboris the increase in a firm’s revenues created by hiring an additional laborer. Afirm is willing to hire a worker when the marginal product of labor is greater than the wage.Table 18.1: The marginal product of labor generally declines as more labor is hired. How many janitorswill McDonalds hire? That depends on the wage. If wage is above 35, hire zero. If wage is 32, hire 1. Ifwage is 28, hire 2. When wage falls, McDonald’s hires more janitors and assigns them to less importanttasks. So as the wage falls, so does the MPL. They will keep hiring workers so long as the MPL isgreater than the W. The wage of janitors will be determined by the market demand and supply ofjanitors. The market demand for janitors is downward-sloping.Supply of Labor: the market supply curve for labor will be upward-sloping. High wages encourage agreater supply of labor. However, an individual’s labor supply curve need not slope upward throughoutits range.(Figure 18.2) the market supply curve for labor is very likely to be positively sloped. When the wageincreases, the market supply increases for two reasons: 1) some workers, are likely to work more as thewage increases. 2) More important, when the wages of janitors increase, that attracts workers from otherindustries. Together, these two factors mean that even if some individuals supply less labor at a higherwage, a higher wage increases the quantity of labor supplied overall. Thus, an upward-sloping supplycurve is the normal situation.Why do janitors in the U.S. earn more than janitors in India even when they do the same job?The supply of labor depends on the real wage, but the real wage of a job includes not just the monetarypay but also how much fun the job is. The danger of a dangerous job reduces the supply of labor,pushing the supply curve for labor to the left and up, as shown in figure 18.6. The higher wage ofaccountants compensates for the lack of fun, or, equivalently, the greater fun of being an artistcompensates for the lack of money. Similar jobs must have similar compensation packages. Example:Imagine accounts and musicians require a similar background. If musicians were paid higher wages thanaccountants, the supply of musicians will increase and the supply of accountants will decrease. But the

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